Council ready to move ahead with auction of liquor license

Feb. 6, 2013

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VINELAND — The city is going ahead with plans to issue and auction a retail distribution license after resolving differences over terms of a development agreement it has with ShopRite, which hopes to be the successful bidder on that license.

Councilman Paul Spinelli said he would make the motion to add it to the council’s agenda for next Tuesday night, with Councilman John Procopio volunteering to be the second.

ShopRite wants the license to be included in a store it is building on West Landis Avenue and views it as critical piece in its battle with cross-avenue rival Walmart for market share in the county’s largest community.

The previous City Council approved the development agreement with ShopRite. Its defeat last November left implementation of the agreement as far as the liquor license in the hands of an entirely new council, which questioned what members view as a loosely written document.

One major area of controversy was whether the council would require a minimum auction bid on the forthcoming license of $300,000 — or whether the city could set it higher. The idea of additional revenue was on the minds of the new council, but ShopRite argued the bidding minimum must be $300,000 exactly.

City Solicitor Richard Tonetta told members that, after research and talks over the last few weeks, he has concluded that ShopRite was correct in its position on the minimum bid.

Separately, Tonetta said that he had met with representatives of the New Jersey Liquor Store Alliance about that organization’s objection to the license deal. The organization believes the city is creating “an unfair competitive edge” by allowing ShopRite to locate a liquor section within the proposed store.

“Again, it’s a huge building — 92,000 square feet — with more than two tenants or three tenants,” Tonetta said.

Tonetta, after distributing a diagram of the site, said that in his legal opinion ShopRite would not be violating municipal ordinance rules.

“What’s important for everyone to know is this layout is a three-condo unit,” Tonetta said, adding that includes one separate building pad.

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Tonetta said there are several tenants within the grocery story area, but the liquor store is not one of them.

He described a foyer serving as a common entry to the grocery section, the liquor store and two “tenant” locations. There is no access from the grocery store into the liquor store.

“We heard all the concerns that everyone had,” Tonetta said. “Obviously, we understand the issue with regard to the competition and whether or not a liquor license adversely impacts the competition. And quite frankly, I can’t see where it wouldn’t. But that being said, that’s what America is about. And so, I don’t see anything that would prohibit council from moving forward if it decides to with regard to sale of the liquor license.”

Tonetta said he also had met with the holder of another city liquor license. He did not identify the owner or the subject of the meeting.

Procopio indicated his support for the project but that the issue of unfair competition had concerned him.

Councilwoman Angela Calakos said she understood the concerns about competition. However, she said, the project means money and jobs for the city.

“Look at who’s across the street,” Tonetta said. “Walmart. So these guys are going against the giants. You know, God bless them.”

As far as competition issue, Spinelli noted to Procopio that ShopRite has a bakery section and that might alarm bakeries. “You buy where you choose to buy,” he said.

“I think these gentlemen are putting out a lot of money for that position,” Spinelli said. “And again, there’s no guarantee that they get it. And if they don’t get it, they’ve got to go to Plan B. Whether it’s to try to buy somebody else’s (license) or to put something else there.”

“I applaud them for doing that,” Procopio responded. “I think it’s a great thing for the city. I think it’s great to clean up that mess we had.”

Spinelli added that it was proper for the council to honor an agreement struck under the city’s last administration.

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